Find the balance in Meg's account after 1 year if her bank paid

Question

6.5% simple interest on her deposit of $5,000.

Answer 1

The simple interest earned by Meg in one year is:

I = P * r * t
where:
P = $5,000 (principal)
r = 6.5% (interest rate as a decimal)
t = 1 (time in years)

I = $5,000 * 0.065 * 1
I = $325

The balance in Meg's account after 1 year is:

$5,000 + $325 = $5,325